Discussion Chapter 17 - Education Policy: Grade Justice, "Privilege" and Coercion

Some final applied economics for you.

1. "The income gap is growing wider; the poor are getting poorer and the rich are getting richer."

Ever heard this before? Maybe from one of your professors? A movie? A newspaper article? Of course, you have. It's a very popular bumper sticker too. However, the income "gap" can grow wider, and yet the poor can become richer simultaneously.

How so?

Well, let's say you're rich and I'm poor. Pretend that last year, I made $10 and you made $100 - which means that our income "gap" was $90. Your income is 9X mine!!! You're so much money.

Now, let's say this year I made $15 and you made $110. This means our income gap is now $95. OH NO!! The income gap is widening!! It was $90 last year but now it is $95!! You're becoming richer and I'm becoming poorer!!! Capitalism is unfair! Corporations are greedy!! We demand economic 'justice'!!! etc.....

Ok, let's return to Earth for a second.

YOU made 10% more money this year than last - ([110-100]/100) = 10%. You're 10% better off financially.

However, I made 50% more money ([15-10]/10) = 50% .... yes, it's true, you are becoming richer. Yes, it's true, the income gap is widening. But I am becoming richer faster. In other words, my standard of living is improving faster than yours, which is probably the thing we care most about in, discussions of those who have less.

Since 1900 in the United States, the rich have become richer every decade. But the poor have become richer FASTER every decade for the last 120 years as well. Thisis not some statistical trick and it's not some random hypothetical example - it's what scientists call, an "empirical fact." In other words, it's true.

Another way of looking at this is as follows: the change in lifestyle, health, education, material possessions, housing, technology access, and life expectancy for the "rich" hasn't been all that dramatic since 1900 - they've always been able to afford the finer things. They've made gains but relatively marginal gains.

But the changes in lifestyle, health, education, material possessions, housing, technology access and life expectancy for the "poor" or "regular people" have been staggering improvements every decade for the last 120 years.

Income "gaps," like other gaps we've talked about, don't always mean what you think they mean. And they certainly don't always mean what other people insist they mean, no matter how loud or how many times they say it.

2. In the interests of "equality," I'm thinking about instituting a program of "Grade Justice" in my classes.

It would work like this: Students who wind up with the most points at the end of class (the 'A' and 'B' students) will have points taken away from them (by me) and then redistributed to students who wound up with less points (the 'D' and 'F' students). I justify this based on certain "privileges" some of you have had in life that have given you the tools to earn better grades. Consequently, as a representative of government dedicated to equal outcomes, I will correct this social "unfairness" to achieve justice - "grade" justice.

Describe AND explain:

1)Will the D/F students be more knowledgeable about political science because of this policy?

2) Will the policy help D/F students get into better schools? How will they perform in those schools?

3) After some time, what students would be eager to avoid my classes? Are you eager to achieve to enroll in my classes?

4) After some time, what would it mean to be an "A" student in my class?

5) Will the policy motivate students to do their best?

6) In your opinion, would this be 'justice' for either student?